Is Covenant Logistics Group, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Covenant Logistics Group, Inc. moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, with a P/E ratio of 16, an EV to EBITDA ratio of 6.13, and a Price to Book Value of 1.36. In comparison, Universal Logistics Holdings, Inc. has a lower P/E of 11.61 and an EV to EBITDA of 5.90, while Heartland Express, Inc. shows a risky valuation with a P/E of -21.46.
Despite recent struggles, including a year-to-date return of -16.02% compared to the S&P 500's 12.22%, Covenant Logistics has demonstrated strong long-term performance with a 5-year return of 180.34%, significantly outperforming the S&P 500's 96.61% over the same period. This suggests that while short-term challenges exist, the company's long-term value proposition remains compelling.